LOWES COMPANIES INC (LOW) Factsheet

LOWES COMPANIES INC (LOW) Stock Analysis

Analysis from 10-Q filed 2025-11-26. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 25.9%. FCF margin 8.6%. D/E -4.1x. Source: 10-Q filed 2025-11-26.

Metric Value Context
ROIC 25.9% Above industry average
FCF Margin 8.6% Healthy cash flow
Debt/Equity -4.1x Conservative leverage

ROIC 25.9% — Top 10% of sector peers. FCF margin 8.6% — Top 25%.

Explore LOWES COMPANIES INC: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for LOW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.


Profitability: LOWES COMPANIES INC earns 25.9% ROIC, Top 10% in Consumer Discretionary

ROIC TTM 25.9%, sector median 7.7%, Top 10%. DuPont: NOPAT margin 8.8% × asset turnover 1.7x. Gross margin 33.3%. Operating margin 11.5%. Source: 10-Q filed 2025-11-26.

Metric LOW Rating Context
Return on Invested Capital (ROIC) 25.9% Excellent Above sector median of 7.7%
Return on Equity (ROE) -61.7% Red flag Moderate equity returns
Gross Margin 33.3% Good Competitive pricing environment
Operating Margin 11.5% Good Moderate operational efficiency

Cash Flow: LOWES COMPANIES INC generates $7.6B FCF at 8.6% margin, positive NaN/8 quarters

FCF TTM $7.6B. FCF margin 8.6%, Top 25%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-26.

Metric LOW Rating Context
Free Cash Flow Margin 8.6% Adequate Healthy cash generation
Free Cash Flow (TTM) $7.6B Good Positive cash generation
OCF/Net Income 1.5x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: LOWES COMPANIES INC at -4.1x leverage

Debt/Equity -4.1x. Total debt $37.9B, cash & investments $1.2B. Source: 10-Q filed 2025-11-26.

Metric LOW Rating Context
Debt to Equity -4.1x Excellent Conservative capital structure
Net Cash Position $-36.7B Warning Net debt position

Valuation: LOWES COMPANIES INC trades at 19.7x earnings

P/E 19.7x. EV/Sales 1.9x. FCF yield 5.8%. Dividend yield 2.0%. Source: 10-Q filed 2025-11-26.

Metric LOW Rating Context
P/E Ratio 19.7x Adequate Reasonable valuation
EV/Sales 1.9x Excellent Attractive revenue multiple
FCF Yield 5.8% Good Attractive cash return
Dividend Yield 2.0% Adequate Growth focus over income

Capital Allocation: LOWES COMPANIES INC returns 2.4% shareholder yield

Total shareholder yield 2.4% (div 2.0% + buyback 0.4%). Capital returned $3.1B TTM. Source: 10-Q filed 2025-11-26.

Metric LOW Rating Context
Total Shareholder Yield 2.4% Adequate Dividend + buyback yield combined
Buyback Yield 0.4% Adequate Minimal buyback activity
Total Capital Returned (TTM) $3.1B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 25.9% Top 10% 3.4x above
Free Cash Flow Margin 8.6% Top 25% 3.9x above
Gross Margin 33.3% Bottom 50% 0.9x below
Operating Margin 11.5% Top 25% 2.7x above
Return on Equity (ROE) -61.7% Top 5% -5.8x below
P/E Ratio 19.7x N/A -

Financial Scorecard

Metric LOW Rating Sector Context
Return on Invested Capital (ROIC) 25.9% Excellent Top 10% of sector (median: 7.7%)
Free Cash Flow Margin 8.6% Adequate Top 25% of sector (median: 2.2%)
Gross Margin 33.3% Good Bottom 50% of sector (median: 38.7%)
Debt to Equity Ratio -409.3% Excellent Conservative capital structure
P/E Ratio (Price-to-Earnings) 19.7x Adequate Fair value
Free Cash Flow Yield 5.8% Good Solid cash yield

Frequently Asked Questions

Q: What is LOWES COMPANIES INC's Return on Invested Capital (ROIC)?

LOWES COMPANIES INC (LOW) has a trailing twelve-month Return on Invested Capital (ROIC) of 25.9%. Sector median 7.7%. Source: 10-Q filed 2025-11-26.

Q: What is LOWES COMPANIES INC's Free Cash Flow Margin?

LOWES COMPANIES INC (LOW) has a free cash flow margin of 8.6%, generating $7.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-26.

Q: What is LOWES COMPANIES INC's P/E ratio and how does it compare to peers?

LOWES COMPANIES INC (LOW) trades at a P/E ratio of 19.7x, which is above the sector median of N/A. EV/Sales 1.9x. FCF yield 5.8%. Source: 10-Q filed 2025-11-26.

Q: Does LOWES COMPANIES INC pay a dividend?

LOWES COMPANIES INC (LOW) currently pays a dividend yield of 2.0%. Total shareholder yield (dividend + buybacks) 2.4%. Source: 10-Q filed 2025-11-26.

Q: What is LOWES COMPANIES INC's revenue and earnings growth?

LOWES COMPANIES INC (LOW) grew revenue by 6.2% year-over-year. EPS -2.1% YoY. Source: 10-Q filed 2025-11-26.

Q: Is LOWES COMPANIES INC buying back stock?

LOWES COMPANIES INC (LOW) repurchased $462.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Source: 10-Q filed 2025-11-26.

Q: How does LOWES COMPANIES INC compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, LOWES COMPANIES INC (LOW) shows: ROIC 25.9%, sector median 7.7% (Top 10%). FCF margin 8.6%, sector median 2.2% (Top 25%). Gross margin 33.3%, 5.4pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with LOWES COMPANIES INC?

Quantitative warning flags for LOWES COMPANIES INC (LOW): 1) ROIC declining -15.4% over 8 quarters. Source: 10-Q filed 2025-11-26.


Data Source: Data sourced from 10-Q filed 2025-11-26. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.